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RAIT Financial Trust Provides Update on Quarterly Common Dividend, Announces Tax Treatment of 2008 Dividends and Declares Prefe

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^{Published in Business and Finance on Tuesday, January 27th 2009 at 14:43 GMT, Last Modified on 2009-01-27 14:44:55 by Market Wire}  

PHILADELPHIA--([ BUSINESS WIRE ])--RAIT Financial Trust ("RAIT") (NYSE:RAS) today announced the following:

Update on Quarterly Common Dividend

On January 27, 2009, after reviewing RAIT Financial Trust's ("RAIT") 2008 REIT taxable income, RAIT's Board of Trustees (the "Board") determined that the dividends paid during 2008 fully satisfied RAIT's 2008 REIT distribution requirements and that, consequently, no additional distribution on RAIT's common shares was necessary to maintain REIT compliance for the 2008 taxable year. To qualify as a REIT, RAIT is required to make annual distributions to shareholders in an amount at least equal to 90% of RAIT's REIT taxable income. RAIT's REIT taxable income for any period may vary from RAIT's reported adjusted earnings and reported GAAP earnings. In 2009, the Board will continue to review the status of the quarterly dividend on RAIT's common shares after the end of each quarter. The Board's review will include analyzing whether RAIT should use IRS Revenue Procedure 2009-15which permits publicly-traded REITs to distribute stock to satisfy their REIT distribution requirements if stated conditions are met, including that at least 10% of the aggregate declared distribution be paid in cash and that shareholders be permitted to elect whether to receive cash or stock subject to the limit set by the REIT on the cash to be distributed in the aggregate to all shareholders.

Tax Treatment of 2008 Dividends

Common Shares

RAIT's common shares are currently listed under the CUSIP #749227104 and trade under the NYSE ticker symbol RAS. During 2008, the aggregate amount of dividends paid on RAIT's common shares was $1.73 per share. For tax reporting purposes, the aggregate amount of dividends paid in 2008 will be classified as follows: $1.5921 as ordinary dividend and $0.1379 as return of capital. The following table contains this information on a quarterly basis.

Series A Preferred Shares

RAIT's 7.75% Series A Cumulative Redeemable Preferred Shares are currently listed under the CUSIP #749227203 and trade under the NYSE ticker symbol RAS PRA. During 2008, the aggregate amount of dividends paid on RAIT's Series A preferred shares was $1.9376 per share. For tax reporting purposes, these 2008 dividends will be classified as follows: $1.9376 as ordinary dividend. The following table contains this information on a quarterly basis.

Series B Preferred Shares

RAIT's 8.375% Series B Cumulative Redeemable Preferred Shares are currently listed under the CUSIP #749227302 and trade under the NYSE ticker symbol RAS PRB. During 2008, the aggregate amount of dividends paid on RAIT's Series B preferred shares was $2.0936 per share. For tax reporting purposes, these 2008 dividends will be classified as follows: $2.0936 as ordinary dividend. The following table contains this information on a quarterly basis.

Series C Preferred Shares

RAIT's 8.875% Series C Cumulative Redeemable Preferred Shares are currently listed under the CUSIP #749227500 and trade under the NYSE ticker symbol RAS PRC. During 2008, the aggregate amount of dividends paid on RAIT's Series C preferred shares was $2.2188 per share. For tax reporting purposes, these 2008 dividends will be classified as follows: $2.2188 as ordinary dividend. The following table contains this information on a quarterly basis.

Preferred Stock Dividend Declaration

On January 27, 2009, RAIT's Board of Trustees declared a first quarter 2009 cash dividend of $0.484375 per share on RAIT's 7.75% Series A Cumulative Redeemable Preferred Shares, $0.5234375 per share on RAIT's 8.375% Series B Cumulative Redeemable Preferred Shares and $0.5546875 per share on RAIT's 8.875% Series C Cumulative Redeemable Preferred Shares. The dividends will be paid on March 31, 2009 to holders of record on March 2, 2009.

About RAIT Financial Trust

RAIT, a real estate investment trust ("REIT"), provides a comprehensive set of debt financing options to the real estate industry, including investors in commercial real estate, REITs and real estate operating companies and their intermediaries, throughout the United States and Europe. RAIT manages and invests in commercial mortgages, including whole and mezzanine loans, commercial real estate investments, preferred equity interests, residential mortgage loans, trust preferred securities and subordinated debentures. RAIT generates income for distribution from our portfolio of investments and assets under management. For more information, please visit [ www.raitft.com ] or call Investor Relations at 215-243-9000.